Home sales market cools because buyers no longer feel rushed: Redfin

Indicators continue to show that the housing market is cooling down, but at the same time, median sales prices and asking prices are up compared with the same week last year, Redfin reported.

The share of homes for sale where the seller dropped the listed price rose to 4.9%, making it the 15th consecutive week this metric increased. Homes are also staying on the market a little longer — an average of 17 days — up from the all-time low of 15 days recorded for four weeks in late June and July. But this is down from 35 days a year earlier. These are among the indicators showing that homebuyers no longer feel rushed to make a purchase.

"Although the market still feels tight and competitive, the number of homes for sale keeps creeping up as more homes are listed," Daryl Fairweather, Redfin's chief economist, said in a press release. "Those home sellers are adjusting their price expectations or seeing their homes sit on the market."

However, the median home-sale price increased 17% year-over-year to $362,642 for the four week period ended Aug. 8. The median asking price for a newly listed property was also up, by 11% from the same period in 2020, to $355,389.

More than half of those sold during the period, 53%, were above list price, up from 30% a year earlier.

Still, the median listing price is down 1.6% from the all-time high set during the four-week period ending June 27, and the lowest since early May, Redfin said.

While new listings grew a scant 0.2%, compared with a year ago, Redfin attributed this to normal home sales timing seasonality. In fact, listings are down by 9% from this year's peak during the four-week period ended June 27.

In addition, half of homes entering into contract had the offer accepted within the first two weeks following listing, well above the 44% rate during the same period a year ago. This is down 7 percentage points from the high point of this year during the four-week period ending March 28.

Positive indicators show there will be more balance between buyers and sellers in the near future.

"There could be even more listings coming on the market as mortgage forbearance ends and homeowners with missed payments decide to sell," Fairweather said. "And mortgage rates remain near all-time lows with no signs of an increase on the horizon."